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Judgment
It is an application filed by the Liquidator seeking an Order under Section 54 of the Insolvency and Bankruptcy Code, 2016 read with Regulation 14 of the Insolvency & Bankruptcy Board of India (Liquidation Process) Regulations, 2016 seeking for early granting of “Dissolution” of Corporate Debtor.
The Adjudicating Authority vide its order dated 26.04.2018 in a Petition filed by the Operational Creditor under Section 9 of the Code directed initiation of the Corporate Insolvency Resolution Process (CIRP) against the Corporate Debtor namely Girna Infraprojects Pvt. Ltd., wherein Mr. Prakash Nath Mishra (Applicant), was appointed as Interim Resolution Professional (IRP). Thereafter, the Applicant was further appointed as Resolution Professional (RP) by the CoC.
The Applicant has reported that there was no expression of interest or resolution plan received for the Corporate Debtor and hence the committee of creditors authorized the resolution professional with 100% voting rights on 9th January 2019 under section 33(2) of the IBC 2016 to file an application for liquidation of corporate Debtor. The Applicant filed Miscellaneous Application MA 135/2019 and Hon’ble Tribunal by its order dated 24.07.2019 was pleased to commence Liquidation Process with respect to the Corporate Debtor.
The Applicant states that the Liquidation process commenced on 27.07.2019 and accordingly the Preliminary Report has been prepared and was submitted on 28.09.2019 and progress Report for the first quarter ending 30.09.2019 was submitted on 15.10.2019. The Corporate Debtor in liquidation process do not have any tangible assets. The total actual asset available as per the books of accounts constitute shares in Abhyudaya Co-Op Bank Ltd as per the books for Rs 6000/- (Rupees six thousand only) and bank balance in different accounts as under:
| Sr. No | Particulars | Amount |
| 1 | Axis Bank, Nashik CA No: 916020026337409 | 358 |
| 2 | SBI Branch 01469 TDR 32011618632 | 1,67,007 |
| 3 | SBI Branch 01469 TDR 31964919176 | 24,314 |
| 4 | Laxmi Vilas Bank, Nashik CA: 0494360000000511 | 5,874 |
| Total | 1,97,553 |
There is no documentary evidence or share certificate available on records with respect to ownership of the equity share of Abhyudaya Co-operative Bank worth Rs 6000/-. Nonetheless, the Liquidator approached the Nashik Branch for realization and on their instance had approached and written to Head office at Dadar vide email on 16.10.2019 followed up with reminder on 31.10.2019, 06.11.2019 and 29.11.2019. However, there is no response or acknowledgment received from the said bank. There were several bank accounts of the Corporate Debtor in State Bank of India and the amounts to the credit of those accounts has been transferred to the liquidation account.
The Applicant states that, the total realization after transferring all amounts to the credit of the liquidation account is as under :-
| Sr. No | Particulars | Amount | Amount transferred to liquidation account |
| 1. | Axis Bank, Nashik CA No: 916020026337409 | 358 | Nil |
| 2. | SBI Branch 01469 TDR 32011618632 | 1,67,007 | 1,67,007 |
| 3. | SBI Branch 01469 TDR 31964919176 | 24,314 | 22,982 |
| 4. | Laxmi Vilas Bank, Nashik CA: 0494360000000511 | 5,874 | 5,874 |
| Total | 1,97,553 | 1,95,863 |
i. Axis Bank account has accumulated unadjusted charges for non-maintenance of MAB for Rs 28,737/- as on 9th Nov 2019 hence could not be transferred.
ii. Transferred to liquidation account on 13th Dec 2019.
iii. Transferred to liquidation account on 5th Nov 2019.
iv. After debiting the bank charges the balance in the liquidation account is Rs 1,95,273.73/- and there is no payment related to liquidation process is paid from this account yet.
The loans and advances as appearing on the books are not realizable because all of them are created by book entry in the accounting software, not supported by the documents or details such as identification references of the party (such as PAN, Aadhar, address etc.) to conclusively identify the real debtor or nature of debts as appearing in the books of corporate debtor.
The Applicant said that in order to comply with essential procedure of Public Announcement the Liquidator has been incurring expenditure from his own personal account and such expenditure cannot be incurred by Liquidator personally further. There are no assets for liquidation and funds are insufficient to meet liquidation cost.
That based on the above and findings mentioned in the Preliminary Report it is apparent that the realizable properties of the corporate debtor are insufficient to cover the cost of the liquidation process; and the affairs of the corporate debtor do not have adequate records and information which require any further investigation by the liquidator.
The Applicant/ Liquidator submits that the as per Regulation 13 of IBBI (Liquidation Process) Regulations, 2016 Preliminary report was filed on 01.04.2019 and the 1st quarterly report was filed on 15.04.2019, 2nd quarterly report was filed on 05.07.2019 and 3rd quarterly report was filed on 15.10.2019. Thereafter, 4th quarterly report was filed on 15.01.2020.
The Applicant states and submits that as per Regulation 45 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016, the Final Report along with Compliance Certificate in Form – H was filed with this Hon’ble tribunal on 02.03.2020.
The Applicant states that the Bank Account of the Corporate Debtor with State Bank of India, address at: Nasik Road Branch Rigved, Nashik Road Nashik 422101, having its Account Number 38828859971 is closed on 28.04.2022.
On 15.01.2021, the Learned Liquidator filed final Progress Report of the Corporate Debtor under Regulation 45 of the Insolvency and Bankruptcy Board of India (Liquidation Process) Regulations, 2016. On careful perusal of the Application and the Progress Report on record it is noticed that neither there are Assets left with the Corporate Debtor nor any trade receivables are available. As per the Learned Counsel for Liquidator the Debtor Company has no Asset which can be liquidated as is also evident from the Report of the Liquidator.
That the liquidator while preparing the Final progress report came to conclusion that there being no assets realizable or saleable, it will only increase the cost of liquidation, can opt for “Dissolution”.
For the purpose of pronouncement of Dissolution of a Corporate Debtor Section 54 of The Insolvency and Bankruptcy Code, 2016 reads as under:-
“54.(1) Where the assets of the corporate debtor have been completely liquidated, the liquidator shall make an application to the Adjudicating Authority for the dissolution of such corporate debtor.
(2)The Adjudicating Authority shall on application filed by the liquidator under subsection (1) order that the corporate debtor shall be dissolved from the date of that order and the corporate debtor shall be dissolved accordingly.
(3)A copy of an order under sub-section (2) shall within seven days from the date of such order, be forwarded to the authority with which the corporate debtor is registered.
As a consequence, through this Order it is hereby declared that not only it is just and equitable but as all the assets of the Corporate Debtor is sold and disposed of, no asset is available for the purpose of ‘Liquidation’ as reported by Learned Liquidator, this is a fit case of a Corporate Debtor to be dissolved as prescribed under Section 54 of The Insolvency and Bankruptcy Code, 2016. Ordered accordingly, stood ‘Dissolved’ from the date of this Order.
Since the Debtor Company stood Dissolved vide this order and no proceedings are now pending, therefore the Registry is directed that the case file be consigned to records.
Copy of this Order shall be forwarded within 7 (seven) days to the concerned authorities and the Registrar of Companies having jurisdiction, for further necessary action as prescribed under Law.
Accordingly, MA No. 4115 of 2019 is hereby allowed and disposed of and CP No. 1582 of 2017 is hereby closed.